Milling & Baking News - January 3, 2017 - 34

Ingredient Week X

Wheat Futures
Wheat futures advanced last week
with Chicago futures leading the way
higher in relatively light volume. A
constructive export transaction report
was supportive as were concerns about
the vulnerability of the hard red winter
wheat crop to winterkill because principal growing areas lacked protective
snow cover. At the same time, with U.S.
wheat supplies ample and world wheat
supplies at record levels, it remained
difficult to find sufficient fuel to power
a sustained rally. Despite last week's
gains, Chicago and Kansas City wheat
futures were trading not far above recently set contract and multiyear lows.
The K.C. March future closed on Dec.
29 at 15¼c a bu above its contract and
multiyear low set Dec. 7. The Chicago
March closed 11¾c above its low set Dec.
23. And the Minneapolis March closed
45½c above its low posted on Aug.
31. Spring wheat futures have outperformed winter wheat contracts because
of relatively strong world demand for
quality, high-protein wheat.
The U.S. Department of Agriculture
indicated net export sales of wheat
during the week ended Dec. 22 totaled
568,100 tonnes, up 91% from the previous week and up 25% from the prior

four-week average. Notable were sales
to China totaling 170,300 tonnes. The
transactions total exceeded pre-report
trade estimates. The U.S.D.A. indicated
wheat exports during the week ended
Dec. 22 totaled 481,900 tonnes, up 17%
from the previous week and up 18%
from the prior four-week average.
Egypt bought 235,000 tonnes of wheat
last week, 180,000 tonnes from Russia
and 55,000 tonnes from Ukraine.
The U.S.D.A. indicated about 25% of
the winter wheat crop was growing in
areas experiencing drought. There were
three principal areas affected by drought,
the hard winter wheat states of the Southwest, soft red winter wheat areas in the
Southeast and California. Snow cover
was lacking in the Southwest, rendering
the crop there vulnerable to winterkill if
temperatures plunge. At the same time,
no severe weather threats were in sight,
and crop analysts noted spring and not
winter weather is more important in determining winter wheat prospects.
The dollar continued to trade near
multiyear highs, exerting pressure across
agricultural commodity markets. MBN

Millfeed
Prices were mostly steady to modestly
higher last week. January became the

nearby month with prices pulled higher
from prior January-March quotes by the
strong spot premium that resulted from
tight millfeed supplies in late December.
In contrast, February-March quotes were
at wide discounts to January in most areas with April-June prices lower still.
Many market participants were out
of their offices between Christmas and
New Year's. Traders said mill downtime during the Christmas break had
proceeded in line with expectations
with facilities taking about three days'
downtime. Traders said similar schedules were likely when mills close for the
New Year's holiday. As a result, nearby
supplies in most areas were tight to nonexistent, a situation likely to continue at
least into the week after New Year's.
Demand was relatively steady as most
end-users had covered immediate needs
ahead of the holiday break. Buyers were
likely to stay on the sidelines for the remainder of the holiday period.
Millfeed was $102 a ton in Kansas City
and $94 in Minneapolis, on a rail basis,
compared with corn at $115 a ton and
sorghum at $100 a ton, both K.C. Corn
gluten feed was down $5 at $120 a ton,
distillers' dried grain was down $10 at
$105 a ton, and dehydrated alfalfa was
down $5 at $210 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu
Dec. 30
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

- Change from -
Dec. 23 Dec. 16

Year
ago

High

+3¾c
+3½c
+2¾c
+2c

4.20¾
4.32¼
4.43¼
4.56¾

4.06½
4.18
4.29¼
4.45½

4.68½
4.78¾
4.88¾
5.03

6.85½ (12-17-14)
6.85½ (12-17-14)
6.51½ (06-30-15)
6.033/4 (12-17-14)

3.99½ (12-07-16)
4.11½ (12-07-16)
4.23½ (12-07-16)
4.383/4 (12-07-16)

+14½c
+13¾c
+13½c
+12½c

-1¼c
-1¼c
-½c
-½c

4.11
4.22¾
4.36
4.50¼

3.94½
4.07¾
4.21¾
4.36¾

4.70
4.76½
4.83¼
4.92¼

6.54½ (12-17-14)
6.48 (06-30-15)
6.271/4 (12-17-14)
5.90 (06-08-16)

3.923/4 (12-23-16)
4.06 (12-23-16)
4.20 (12-23-16)
4.34½ (12-23-16)

+7¼c
+5½c
+5¾c
+5¾c

-6¼c
-6¾c
-5½c
-4¼c

5.41
5.37¼
5.40
5.45¼

5.30¼
5.27¾
5.31
5.37

4.93¼
5.02
5.12½
5.24¼

6.68 (06-30-15)
6.03 (08-20-15)
6.07½ (06-08-16)
6.093/4 (06-09-16)

4.90 (08-31-16)
4.993/4 (08-31-16)
5.093/4 (08-31-16)
5.20 (08-31-16)

4.18½ +12¼c
4.30
+12½c
4.41¼ +12¼c
4.55¼
+12c
4.08
4.20½
4.34¼
4.47¾
5.38
5.34
5.38
5.44

$6.70

Season's
Low

Week's
High
Low

$5.70
$4.70
$3.70
J

A

J

O

Previous Year

Current Year

Chicago wheat futures
March contract, $ per bu

$6.50
$5.75
$5.00

Bulk middlings

$4.25

$ per ton, delivered rail unless noted
Spot
Kansas City
102 @ 112
Southwest, f.o.b. truck
128 @ 138
Minneapolis
94 @ 104
Upper Midwest, f.o.b. truck 90 @ 100
Chicago West
107 @ 117
Central states, f.o.b truck 126 @ 136
Buﬀalo
103 @ 113
Southeast
115 @ 125
N. & S. California
121 @ 136
Los Angeles, f.o.b. truck 117 @ 132
Paciﬁc Northwest
85 @ 95
Upper Midwest, sacked
327
Wheat germ
220 @ 240

Jan.
102@
128@
81 @
77 @
94 @
112@
102@
110@
121@
117@
85 @

34 / January 3, 2017 XMilling & Baking News

112
138
91
87
104
122
112
120
136
132
95

- Change from -
Dec. 23 Dec. 16
-3@ -3
-
+3@ +3 -9@ -9
-11@ -11 -5@ -5
-11@ -11 -5@ -5
-11@ -11 -5@ -5
-11@ -11 -8@ -8
-1@ -1 +7@ +7
-10@ -10
-
-
-
-
-
-
-

Year
ago
95@ 105
115@ 125
86@ 96
82@ 92
99@ 109
100@ 110
80@ 90
90@ 100
122@ 137
118@ 133
110@ 125

$3.50

Feb.-Mar. Apr.-June July-Sept.
94@ 104 63@ 73 65@ 75
120@ 130 89@ 99 91@ 101
71@ 81
68@ 78 74@ 84
67@ 77
64@ 74 70@ 80
84@ 94
81@ 91 87@ 97
98@ 108 78@ 88 77@ 87
76@ 86
64@ 74 63@ 73
105@ 115 90@ 100 85@ 95
119@ 134 112@ 127 112@ 127
115@ 130 108@ 123 108@ 123
85@ 95
85@ 95 85@ 95

J

A

J
Previous Year

O
Current Year

Minneapolis wheat futures
March contract, $ per bu
$6.70
$6.20
$5.70
$5.20
$4.70
J

A

J
Previous Year

O
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - January 3, 2017

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